• by Mark Walsh  @markfwal, November 6, 2009

Smartphone sales continued to hum along in the third quarter, with worldwide shipments up 4.2% in the period compared to a year ago, according to new data from technology research firm IDC.

The total of 43.3 million smartphones, which IDC calls "converged devices," also increased 3.2% from the 41.9 million in the second quarter.

"Demand for converged mobile devices has remained strong all year," said Ramon Llamas, a senior research analyst with IDC covering the mobile space, in a statement. "These devices provide more utility and entertainment than traditional mobile phones. Moreover, users have plenty of devices from which to choose, whether it be a multimedia powerhouse, a messaging machine, or a social networking tool."

While smartphones continue to defy the broader slump in mobile phone sales, even the overall market has begun to show signs of a rebound. IDC reported last week that phone sales in the third quarter were down 6% from a year earlier, but up 5.6% from the prior quarter -- the first uptick since the economic crisis hit last year.

In the smartphone arena, Apple had its best quarter to date with 7.4 million iPhones sold, although its market share remained roughly flat at 17.1% compared to 16.6% a year ago. "The nearly global availability of the iPhone 3G S sparked another round of annual replacements for Apple loyalists, while the lower price on the iPhone 3G put the device well within reach of customers wary of the price," noted IDC.

BlackBerry-maker Research In Motion also saw strong gains as a result of improvement in global regions beyond North America, claiming 19% of the smartphone market, up from 14.6% a year ago. Nokia remained the top overall manufacturer with a 38% market share, up slightly from 37% a year ago.

The IDC report also highlighted the emergence of Google Android-powered phones as a new force in the smartphone world. Along with the much-hyped Droid from Motorola, HTC, Samsung, LG and Sony Ericsson are also rolling out new Android phones. "With an expanding portfolio of handsets and a just released update of the code, Android is poised to mount a serious challenge to the incumbent smartphone OEMs for the first time in its brief history," according to IDC.

Underscoring the smartphone (and Android) surge, Cole Brodman, chief technology officer of T-Mobile USA, said at the Open Mobile Summit 2009 conference Wednesday that 40% of its sales in the fourth quarter will be smartphones, according to a FierceWireless report. The majority of those devices will run on Android and BlackBerry operating systems.

In reporting third-quarter earnings Thursday, however, the carrier said it suffered a net loss of 77,000 subscribers, versus adding 325,000 in the prior quarter and 670,000 a year ago. The carrier will have to hope its new Android and BlackBerry handsets, and "Even More" plans, will help it rebound in the fourth quarter.